Wage issue may hit Hero's Gurgaon facility output

Last updated on: January 22, 2013 10:45 IST

With wage hike negotiations between the management and workers of Hero MotoCorp remaining inconclusive on Monday, production at the Gurgaon facility of the country's largest two-wheeler maker is likely to be affected.

Representatives of the Hero MotoCorp Workers' Union (HMCWU) on Monday said employees at the factory were considering sterner measures, including slowing production processes from tomorrow, to press for better wages.

An HMCWU office bearer told Business Standard: "The management is refusing to consider our demands. We have so far been protesting peacefully but will go slow on production work from tomorrow."

A company spokesperson said: "We have had several rounds of talks with members of the union with the hope of a reasonable, sustainable and sensible settlement. We will continue to engage with the workers towards achieving this objective of reaching an amicable solution, without allowing ourselves to be coerced into decisions governed by external pressure tactics."

At a meeting of the workers and the management at Gurgaon's additional labour commissioner's office this morning, the company stuck to its previous offer of a Rs 7,500-a-month hike, spread over three years, for the permanent workers at its Gurgaon unit. This was less than half of what the workers have been demanding.

"We produce 6,000-7,000 two-wheelers at the Gurgaon unit. That's more than what Honda's Manesar unit produces. Why should we not be given a hike similar to

that given by Honda?" said an HMCWU member.

The workers have been asking for similar increment to Honda's Manesar unit, where a 50 per cent wage hike was announced recently.